March 27, 2019 8:52am
Yet there are many sector “participants” that are just accomplices in crimes against shareholders; check the appreciation “ladder” of share pricing and match it against the net compensation paid to managements in regard to their execution, just one method.
Duty, honor and shareholders should be a mantra – it’s mine!
Pre-open indication: 2 BUYs, 1 SELL and 3 TRADEs
My pre-open focus is indication analysis. An indication can be a development of almost any kind. Specifically, it may be a confirmed fact, a possible fact, or an absence of “something”, a fragment of information or even an observation!
My blend of two styles “quantamental” has become common parlance among investors and traders.
Dow futures are DOWN -0.14% (-37 points), S&P futures are DOWN -0.09% (-3 points) and NASDAQ futures are UP +0.04% (+3 points)
U.S. stock index futures were mostly lower Wednesday, with the Dow futures negative as investors continued to focus on the sharp shift in bond markets;
European stocks mixed amid US recession fears;
- European Central Bank President Mario Draghi delivered a speech on the health of the European economy and monetary policy. The central banker, who is nearing the end of his leadership, said that a temporary slowdown in growth does not necessarily mean a recession is coming.
Asian stock markets closed mixed on the day as investor concerns over the outlook for the global economy lingered.
Data docket: weekly mortgage applications will be released at 7 a.m. ET, while international trade figures for January will be released at around 8:30 a.m. and fourth-quarter current account balance data is set to follow later in the session.
Wednesday’s indications in the pre-market:
The iShares Nasdaq Biotechnology (IBB) is indicating a NEGATIVE -0.15% DOWNSIDE;
The SPDR S&P Biotech ETF (XBI) is NOT indicating;
The Health Care Select Sector SPDR ETF (XLV) is NOT indicating;
The iShares Russell 2000 (IWM) is indicating a POSITIVE +0.2% UPSIDE;
There are many underlying concerns about the sector’s outlook …
- Companies with ‘going concerns”, accomplishment measured by continual losses, trial failures, unfiled INDs and continuous down financings – WHY are they STILL considered viable?
- liquidity remains a cause for concern
Who is speaking-up for investors?
- Investment banks – they’re just voting their financing reporting <called research> capabilities and funds are just complacent holding or selling into strengths.
There’s a difference between trust and conviction. Trust is something you can rely on, beyond certainty. Conviction doesn't demand that you, or anyone else, play by the rules. After gains, there’s pain; followed by advances, declines and other progressions or was it regressions?
- Confidence perceived is not always value achieved
I personally believe that reputational measures or ranking be introduced versus the “spins” practiced by more than some companies
… “And the list goes-on” - wasn’t that a song of exasperation or just another “etcetera”!
From Monday’s closing bell post, “another advantage session for the sector; I am still concerned my thought or bad dreams of lingering uncertainties – the unknowns as news is strikingly absent … Which relates back to my thoughts of confidence in share pricing up swings?”
- Range of the 26 upside was +0.16% (OSIR) to +6.21% (XON) while the 17 downside ranged from -0.23% (AGTC) to -11.22% (CUR -$0.057).
- 3 out of the 26 upside had higher (than the 3 month average) volume
- 4 out of the 17 downside experienced greater volume (than the 3 month average)
- In March’s 18 sessions, there were 6 negative and 12 positive closes;
- In the last five (5) sessions, the IBB has been down -3.05% even after two (2) upside sessions (Monday’s +1.86% and Tuesday’s +0.14%) - there should again be an upswing coming.
Companies in my headlights – It’s your decision; I provide an idea and context:
BioLife Solutions (BLFS) closed down -$0.87 to $17.91 after Monday’s -$0.75. One of the few net incomes for Q4 and FY18 but, it does get expensive. March started out at $19.42, February at $16.37 and January at $12.00 – so; there has been room for “retreating” from the newest high. I also think that BLFS is a buyout candidate – Maintaining BUY;
bluebird bio (BLUE) closed up +$6.59 to $152.81 after Monday’s -$0.42 to $146.22 following Friday’s $146.64 Thursday’s $156.18, Wednesday’s $153.58 and last Tuesday’s $156.10. BLUE has a negative -$3.11 or -2.04% aftermarket indication – BUY to SELL;
uniQure NV (QURE) closed down again -$2.07 to $59.58 after Monday’s -$1.48 to $61.95 and has a positive +$0.19 or +0.31% aftermarket indication. QURE saw Friday ending at $63.43, Thursday at $68.41, Wednesday at $65.82 and last Tuesday’s $66.46 – Maintaining BUY;
CRISPER Therapeutics (CRSP) closed up +$0.64 to $34.83 following Monday’s -$1.40 to $34.19 and has NO aftermarket indication – TRADE;
Editas medicine (EDIT) closed up +$0.39 to $23.19 following Monday’s +$0.19 to $22.80 with a positive +$0.01 or +0.04% aftermarket indication. Last Friday, EDIT traded at $22.61, Thursday at $24.74, Wednesday at $24.12 and last Tuesday at $23.11 – TRADE;
Intellia Therapeutics (NTLA) closed up again +$0.50 to $16.77 following Monday’s +$0.11 to $16.27 with NO aftermarket indication. Friday closed at $16.16, Thursday at $17.62, Wednesday at $16.96 and last Tuesday at $16.86. DRIBBLING – TRADE;
Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.
Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors. All investments are subject to risks. Investors should consider investment objectives.
Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.